what-can-a-short-term-loan-be-used-for

What can a short-term loan be used for?

what-can-a-short-term-loan-be-used-for

What can a short-term loan be used for?

Whether you want a little extra cash for unexpected expenses or you need to get the car back on the road, borrowing quick cash is a flexible solution.

A short-term loan is designed to give you the money you need when something crops up. The only thing that makes it different from other forms of borrowing is it’s specially designed to be paid back earlier.

Payday, doorstep and Credit Union loans are all different kinds of short-term borrowing. Customers usually use a loan to pay for unexpected expenses such as replacement fridges or washing machines.

What short-term loans can’t be used for

Check with the lender, but many state you can’t use the money they give you for commercial purposes such as starting your own company, investing in a friend’s business or buying stock.

If you do want a loan for commercial purposes, there are specialist lenders who can help.

Things you shouldn’t use one for

Although there are a lot of ways you can spend it, there are certain times you might want to avoid using one. For example, taking out one loan to pay off another could lead to further difficulties, or taking out multiple loans to pay for one, expensive item.

If you are struggling with your repayments you can contact, Stepchange, National Debt Line or the Money Advice Service for free impartial advice.

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What can a short term loan be used for

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